Neo Group posts Q3 net profit of S$2.1m on absence of one-off loss

FOOD solutions provider Neo Group posted a net profit of S$2.1 million for the third quarter ended Dec 31, up from S$125,000 previously, partly attributed to the absence of a one-off loss of approximately S$5.2 million in Q3 2016/17.

Revenue, however, slipped 4.2 per cent to S$44.7 million compared to a year ago, mainly due to a fall in its Supplies and Trading business revenue.

For the nine months ended Dec 31, earnings per share stood at 0.61 cent, compared to 0.39 cent in the period before that.

No dividend was declared for the quarter.

In its outlook, the group said that it intends to expand its product offerings and diversify its customer base on the food catering front so as to achieve sustainable growth. The focus is on pursuing more institutional catering, corporate clients and venue partnerships.

It also intends to continue to enhance its recurring income streams through the expansion of its non-seasonal catering subsidiaries such as Gourmetz as well as the group's newly established Tingkat catering subsidiary, Kim Paradise, said the group.

It will also consider inorganic growth as it continues with its multi-brand strategy to capture more market segments and increase its market share in the catering industry.

Neo Kah Kiat, founder, chairman and CEO of Neo Group Limited, said: "With our Food Manufacturing and Food Retail segments successfully in the black, we have shifted our focus to chart a strong turnaround for our Supplies and Trading business. Within this segment, we continue to engage in active efforts to realign procurement practices and streamline operations, as well as reduce storage and logistics costs."